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The crossover of the short- and long-term MAs represent trend reversals. If the short-term crosses above the long-term MAs, then a bullish reversal has occurred.

The crossover of the short- and long-term MAs represent trend reversals. If the short-term crosses above the long-term MAs, then a bullish reversal has occurred. Conversely, if the short-term MAs cross below the longer-term ones, then a bearish reversal is occurring.

Meanwhile, when both groups of MAs are moving horizontally, or mostly moving sideways and heavily intertwined, it means the asset lacks a price trend, and therefore may not be a good candidate for trend trades. These periods may be good for range trading, though.

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